Coalition of Individual Bondholders urges swift Government action on coupon and principal payment agreement
The Coalition of Individual Bondholders Groups (CIBG) has expressed grave dismay over the Ministry of Finance’s failure to promptly implement a Memorandum of Understanding (MoU) regarding the payment of coupons and principal on bonds.
The group, which represents affected bondholders, voiced their disappointment in a strongly-worded statement, highlighting that the government has yet to honor the agreed-upon payment plans outlined in the MoU signed on June 16, 2023.
In a display of mounting frustration, the CIBG emphasized that a considerable amount of time has passed since the understanding was reached, with 42 days elapsed since then and 11 days since the signing ceremony, without any tangible progress made in terms of implementation.
The bondholders expressed their concern that the invitation for dialogue may have been nothing more than a futile attempt to buy time, rather than a genuine effort to alleviate the financial burden faced by bondholders.
The CIBG drew attention to the fact that bond payments have been in default for over 100 days, causing widespread hardship, discomfort, and distress among those affected. With a sense of urgency, the group called upon the Ministry of Finance to fulfill its obligations and ensure the complete payment of all outstanding principals and coupons by the close of business on Friday, June 30, 2023.
Moreover, the coalition urged the government to expedite the consideration of the Memoranda on Treasury bill conversion for maturing bonds from June onwards. This appeal reflects the pressing needs of bondholders and their dependents, who have been denied critical healthcare, essential medication, education for their children, and even basic necessities such as food and shelter.
Highlighting the severe ramifications of further delays, the statement underscored that the inability to pay matured coupons and principals not only threatens the financial stability of bondholders but also deprives them of fulfilling vital obligations, such as covering school fees for their children. The CIBG cautioned the government against reneging on its promises, as such a move would likely provoke a multitude of actions that could prove difficult to contain.
After enduring the burden of locked principals for over four months, which have steadily eroded in value, bondholders firmly believe that the government must now demonstrate a sense of responsibility, fairness, and sensitivity towards its citizens who entrusted their hard-earned savings to the state.
